The proponent of a hotel and hospitality school on Hobart's eastern shore has failed to secure a two-year extension for starting substantial construction on the project.
Chambroad Overseas Investment Australia asked Clarence City Council for the extension, arguing the COVID-19 pandemic caused the delay.
But the motion was lost after a tied vote at Monday night's council meeting.
There has been community opposition to the plans since they were first proposed, mostly centred on how the land was made available to the developers, and the size and scale of the project.
On Monday, aldermen debated the motion for about an hour, with many citing the large number of emails they had received from community members urging them to reject the extension and buy back the land so it could be turned into a community facility.
Others, including Alderman Dean Ewington and Brendan Blomley, argued it was not a planning matter but a contractual decision, and that Chambroad had a clear case to argue the events that caused the delay were beyond its control.
Mayor warns of unforeseen expense if land bought back
At the start of the council meeting a petition was tabled with more than 2,000 signatures, urging aldermen to invoke a clause in the sale contract to buy the land back for the original sale price of about $2.4 million.
But Clarence Mayor Doug Chipman warned council had legal advice indicating Chambroad could rely on a force majeure clause in the contract, which relieves one party from carrying out its obligations if it is affected by events outside of its control.
Mayor Chipman said that could mean the council would have to pay the current market value for the land, which could exceed $7 million.
The council will consider any potential buy-back later this year.
Council refuses permission for private jetty in Ralphs Bay
The Clarence Council also refused planning permission for a private jetty at Sandford on the shore of Ralphs Bay.
Sultan Holdings wanted to build the 60-metre long L-shaped jetty and a shed on Crown land on the foreshore.
The proposal attracted opposition from nearby residents who objected to a private jetty being built on public land, and were worried about the potential effects on the marine environment.
A report by council officers recommended council approve the application.
However, last night aldermen carried a motion by Alderman Richard James to refuse the application, mainly on the grounds the jetty would create no public benefit.
Some aldermen, including Mr Blomeley, argued council was obliged to follow the recommendation of the council's planning officers.
